Britain and Holland overturned the EU’s previous opposition to the blacklisting, which follows evidence suggesting that the radical Shia movement based in south Lebanon was behind a suicide bombing in Bulgaria last year that killed five Israeli tourists and their Bulgarian driver.

Mr Hague weclomed the decision by EU foreign ministers in Brussels to designate the military wing of Hizbollah as a terrorist organisation. “In reaching this agreement, the EU has sent a clear message that it stands united against terrorism. It shows that no organisation can carry out terrorist acts on European soil, such as the appalling attack in Bulgaria one year ago, without facing the consequences,” he said.

This measure will freeze any funds in the EU linked to Hizbollah’s military wing, although whether that will be a significant blow is unclear. Mr Hague denied that the blacklisting would destabilise Lebanon, where Hizbollah’s allies are part of the government.

“Designation will do nothing to affect the EU’s and the UK’s strong relationship with, and support for, Lebanon. As we have shown by our recent large increases in security and humanitarian assistance to Lebanon, the UK remains deeply committed to Lebanon’s stability,” he said.

However, the decision draws a distinction between Hizbollah’s military wing and the rest of the organisation. EU countries will still be able to have links with Hizbollah’s political leadership and European aid for Lebanon’s government will be unaffected.

Officials will compile a list of Europe-based individuals and organisations covered by the blacklisting over the next two weeks.

A key factor behind the new policy was Hizbollah’s intervention in Syria’s civil war on the side of President Bashar al-Assad. The decision was taken unanimously by all 28 EU members, but Spain, Italy and others countries have reservations. They fear a potentially destabilising impact on Lebanese politics.

Lebanon’s interim government opposes the EU decision. Some countries fear the blacklisting could endanger European troops serving in United Nations peacekeeping missions in Lebanon and the Golan Heights.

But Israel welcomed the move.

"I welcome the fact that the EU has also declared Hizbollah to be a terrorist organisation and I thank the leaders of its member states," Benjamin Netanyahu, the Israeli prime minister, said.

Hizbollah "has imposed terrorist rule on wide sections of Lebanon, has converted them into an Iranian protectorate and is stockpiling tens of thousands of rockets there.

"These have been placed in the heart of civilian populations and are designed to be fired at population centres in Israel."